Japan’s technology and e-commerce conglomerate Rakuten has unveiled ambitious plans to invest at least Rs. 845 crore (US$ 100 million) in India during 2025, with a sharp focus on expanding its technology infrastructure, artificial intelligence (AI) capabilities, and workforce strength, particularly within its India Global Capability Centre (GCC). The announcement was made by Mr. Sunil Gopinath, CEO of Rakuten India, highlighting India’s strategic importance in the group’s global digital transformation efforts.

Rakuten operates across a diverse range of sectors including fintech, e-commerce, and telecommunications, and its India operations are poised to become even more integral to the company’s global vision. Mr. Gopinath emphasized that while the Rs. 845 crore figure is a working benchmark, the final investment amount could potentially be higher depending on operational needs and opportunities.

India as a Strategic Tech Hub for Rakuten

India’s growing influence in global technology and AI development has been a key driver behind Rakuten’s increasing focus on the country. The India GCC, which currently employs 4,000 people—90% of them in tech roles—is responsible for creating and maintaining several of Rakuten’s core technology platforms, including Rakuten Pay and the SixthSense platform.

Rakuten Pay is among the company's flagship digital payment tools, while SixthSense is an AI-based system monitoring platform designed to forecast and pre-empt technical issues before they arise. Drawing an analogy, Mr. Gopinath described SixthSense as having the problem-solving instincts of “Sherlock Holmes”, capable of detecting operational anomalies proactively. This system has already been deployed for a broad range of clientele, including banks, airlines, healthcare institutions, and even government agencies.

Doubling Profit with AI-led Innovation

Rakuten's AI strategy has started bearing fruit. In FY24, the company reported a profit of Rs. 622 crore (US$ 73.62 million) from its India operations. Now, with its upcoming investment and enhanced AI capabilities, Rakuten aims to double its profit in FY25. According to Mr. Gopinath, artificial intelligence is integrated into every layer of Rakuten’s operational strategy—ranging from customer service and business tools to employee productivity enhancement.

The company is placing strong emphasis on AI talent acquisition, looking to build a workforce that is not only tech-savvy but also AI-native, which aligns with Rakuten’s goal of becoming a truly intelligent enterprise. Hiring will ramp up across Bengaluru, where Rakuten already has two major offices, with a focus on data scientists, machine learning engineers, and AI product developers.

India GCC’s Expanding Global Footprint

Currently, over 50% of Rakuten’s global business operations are supported through its India GCC. This includes contributions to e-commerce platforms, digital content delivery, mobile network architecture, and enterprise-grade AI systems. The India centre is thus no longer a back-end support function but a strategic innovation hub.

The SixthSense platform developed in India is now being rolled out across Rakuten’s international markets, signifying the export of Indian-developed IP to global domains. This shift marks a transition in India’s role from service provider to global product creator.

Broader Industry Trends and Projections

Rakuten’s announcement comes at a time when India’s GCC sector is booming. A joint report by Nasscom and Zinnov reveals that India’s GCC market, currently valued at Rs. 5,46,128.4 crore (US$ 64.6 billion) in FY24, is projected to reach Rs. 8,87,670 crore (US$ 105 billion) by FY30. These GCCs are central to global R&D, innovation, and digital transformation, with many companies replicating Rakuten’s approach to leverage India for product innovation, engineering, and AI enablement.

This trend has been accelerated by the global demand for digitalisation, where AI and cloud-based systems are key. Indian GCCs have become testing grounds for future-ready tech stacks, especially in domains like autonomous systems, predictive analytics, and digital payments.

Hiring Outlook and Talent Strategy

With a focus on hiring skilled AI professionals, Rakuten is tapping into India’s vast talent pool. The company is expected to expand its headcount significantly this year, with an emphasis on recruiting fresh graduates and mid-career specialists in fields such as machine learning, natural language processing, cybersecurity, and full-stack development.

The company is also partnering with universities and incubation centres to scout early talent and promote AI research collaborations. Internally, Rakuten has launched AI literacy programs and upskilling initiatives to equip its workforce for the future.

Rakuten’s Broader Indian Vision

Rakuten’s increasing stake in India aligns with its broader ambition to make the country its primary technology engine. In fact, more than just a cost centre, Rakuten India is being positioned as a “Centre of Excellence”, from where new global products and platforms will be conceptualised and executed.

This investment is part of Rakuten’s plan to outpace competitors in AI, particularly in regions like Southeast Asia, the US, and Europe, where the company has a strong presence. Leveraging India’s cost advantage, innovation capability, and scalability, Rakuten hopes to future-proof its global business operations and diversify risk away from traditional markets like Japan.

Conclusion

In conclusion, Rakuten’s planned Rs. 845 crore investment in India marks a significant strategic milestone, not only for the company’s technological advancement but also for India’s growing role in global digital transformation. With its AI-driven platforms, talent-heavy GCC, and aggressive growth plans, Rakuten is set to redefine how international firms leverage India for high-end innovation. As AI continues to evolve, India’s prominence as a global AI and digital product powerhouse is poised to reach new heights—fuelled by strategic players like Rakuten who are willing to invest in the future.

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